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INTERNATIONAL GOLDFIELDS LIMITED.. (IGC)

Posted on 07 July 2008 by Alex

 

INTERNATIONAL GOLDFIELDS LIMITED.. (IGC)

Sector Materials
Index N/A
Market Capitalisation $56m
Strategy
Recommended Date 7/7/2008
Share Price * $0.45
12 Month Price Target $0.85
Suggested Stop Loss $0.32
* Price at close of trade on 2/07/2008
 
Recommendation Spec Buy Buy Add Hold Sell
Risk Rating Low Medium High
 
How many shares do I buy?
Our trade size calculation is:
 

Amount ($) you are prepared to risk
 
Market Price - $0.45

Note: Amount ($) you are prepared to risk is typically 2-3% of the TOTAL amount you have to invest.

Checklist

 

 . Resource value

  Summary  

International Gold Field (IGC) is a mineral exploration and development company. During the year 2007, the Company began divesting from its Western Australian gold interests and commenced earning a right into the Genorah Platinum farms in South Africa.

 

Background

RESULTS BY INDUSTRY Revenue B/Down ROS ROA
Gold Exploration 100.0% -82.9%  
Platinum Exploaration 100.0% 0.0%  
RESULTS BY GEOGRAPHY Revenue B/Down ROS ROA
Australia 100.0% 0.0%  
South Africa 100.0% 0.0%  

Investment Summary
INTERNATIONAL GOLDFIELDS LIMITED.. (IGC) has been on our radar for some time now, and we believe the time is now right to recommend the stock as a ‘spec buy’.

 

INTERNATIONAL GOLDFIELDS LIMITED.. (IGC)

INTERNATIONAL GOLDFIELDS LIMITED (IGC)

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INTERNATIONAL GOLDFIELDS LIMITED.. (IGC)

Posted on 05 May 2008 by Think

INTERNATIONAL GOLDFIELDS LIMITED.. (IGC)

Initial Resource for Genorah Project  Click here

 The 12.4Moz with a short term upside of 25Moz is very impressive though. A 100Moz+ long term conceptual model will be amazing but will take at least another 2 years to prove up. Good thing is that there is 10 rigs i=on site drilling.

I think valuing on reserves is misleading
I was looking at their production targets and possible earnings.

They are trying to get a production rate of 1Moz per annum from the 2 farms eventually. This is just a conceptual target but with 25Moz (and the grade is pretty decent as well) this looks achievable.

They are trying to get a production rate of 1Moz per annum from the 2 farms eventually. This is just a conceptual target but with 25Moz (and the grade is pretty decent as well) this looks achievable.

You will have a CAPEX and OPEX. Platinum prices did reach a high of $US2000 per ounce and many are predicting these prices will go higher. I would rather be more cautious and use $1500 per ounce. Remember that production will be at least 5 years away too.

Say the average OPEX and CAPEX expenditure per ounce produced comes to
$750 then your margin is still $750. On 1 million ounce a year then
your profits is $750million per year

I just use a simple PE of 10 which gives $7.5 billion

IGC has 15% which equals $1.125 billion
If I take 20% (a very conservative approach to factor the time and risk) of this then its $225 million

IGC has 15% which equals $1.125 billion
If I take 20% (a very conservative approach to factor the time and risk) of this then its $225 million

IGC has I think 185 million fully diluted. 60 million odd are unlisted
options I think

This would be a value of $1.21 fair value. I am thinking $2 for a 12
month price target

I see NKP as being a juicy play as well. They have 74% of the field. I have NKP as $4.40. This actually represents a 500% difference for NKP to IGC’s 200% upside on current share price. I say a $6 price target for NKP.

Either way this is huge news for both IGC and NKP.

This is just my thoughts. Please do your own research before investing.

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